Partnership Chair
When a counterparty in a contractual relationship fails to fulfill its obligations under the contract, you may have a legal claim in North Carolina to recover compensation for your losses. But how do you prove when non-fulfillment of a contract has occurred?
Understanding Contractual Obligations
Parties can create a binding contract when they have mutual intent to enter an agreement, one party makes an offer, the other accepts the offer without modification, and the parties exchange some form of consideration (such as money). A contract will impose various legal obligations on the parties, such as the duty to provide goods or services or the obligation to pay money for those goods or services.
Non-fulfillment of a contract may result in a minor or material breach of contract. A minor breach involves ancillary terms whose non-fulfillment does not frustrate the contract’s essential purpose(s). However, a material breach involves non-fulfillment of a primary term, such as the obligation to pay money for goods or services. When a minor breach occurs, a non-breaching party must continue to fulfill their contractual obligations but may pursue legal action for losses they incur due to the breach. However, a material breach relieves the non-breaching party of any further duty to fulfill its obligations.
Elements to Prove Non-Fulfillment
A breach of contract claim will require a non-breaching party to prove four legal elements:
- A Valid, Enforceable Contract – First, you must prove the existence of a valid contract between you and the other party.
- Performance or Willingness to Perform – Next, you must prove that you performed all your obligations due under the contract or show that you would have performed those obligations but for the other party’s breach.
- Non-Fulfillment – You must explain how the other party did not fulfill their contractual obligations.
- Damages – Finally, you must show what financial losses you incurred due to the other party’s non-fulfillment of the contract.
Types of Evidence That Can Help Your Case
In a breach of contract case, you might use various kinds of evidence to prove your claim, such as:
- A copy of the contract and any associated documents, such as addenda, schedules, statements of work, or change orders
- Emails, texts, or letters that describe contractual obligations or document a party’s non-fulfillment
- Records of your performance, including invoices, receipts, bank statements, and delivery confirmations
- Witness statements
- Documentation of losses or expenses caused by the breach, such as securing replacement performance, repair costs, or lost profits
Legal Remedies for Non-Fulfillment
In a North Carolina non-fulfillment claim, you might obtain various remedies, depending on the nature of your contractual agreement and the circumstances surrounding the other party’s breach. Examples of remedies potentially available in a breach of contract case include:
- Monetary relief for compensatory and consequential losses from the breach
- Rescission (cancellation) and restitution to put the parties back in the same position as before they entered the contract
- Specific performance, which requires the breaching party to fulfill their obligations; courts may order specific performance only when financial compensation cannot provide adequate relief or the contract involved a unique good or service, such as real estate
When to Contact an Attorney
You should speak to a North Carolina contract attorney as soon as possible when the other party in your contractual relationship misses deadlines for fulfilling their obligations under the contract. Complex contracts and high-value claims will almost certainly require legal help. An attorney can review the terms of your agreement and the circumstances of your and the other party’s performance to determine whether you may have a non-fulfillment claim.
Contact Our Firm Today to Discuss Your Options
When the other party to your contract has not fulfilled their obligation under the agreement, you need experienced legal counsel to advocate for your rights and interests. Contact Patrick, Harper & Dixon, LLP, today for an initial consultation with a North Carolina contract attorney to discuss your options in a case arising from non-fulfillment of contractual duties.
